Top 10 Countries With the Lowest Tax Rates in the World


A common theme around the globe today is the question of why you pay high tax rates. And part of this stems from the swelling of governments in developed countries , which tend to have higher tax rates than underdeveloped countries. Taxes are in fact a crucial element in state finances, such as to perform their services and operate efficiently providing public health, education and infrastructure, among other things, and for that, they need income tax. However, some countries have noticeably lower tax rates than others, and these differences do not always denote a large difference from the norms or quality of infrastructure provided by local and federal governments. Featured in this selection are the 10 countries with the lowest tax rates in the world. Some countries have a lower cost of living, with consistent living standards as well. Generally, cost-of-living indicators take into account variables such as consumer price indices as well as tax rates and rental indices. And certain countries actually have a cheaper cost of living, and are always an option for those who feel insensitive to high taxes and cost of living, and wonder if they can have a better life abroad instead of being in their own right. homeland or current country of residence.

10. BAHRAIN

Considered one of the largest economies in the Middle East, this country has oil and petroleum, which make up 60% of all exports. The country has no tax on profits, although it has labor taxes of 14.6%, plus another 0.4% in miscellaneous taxes.

9. SAUDI ARABIA

Saudi Arabia is one of the holiest places in the Muslim world, and has the second largest oil reserve in the world. Oil exports account for over 95% of its exports, and 70% of government revenues. The tax rate is 14.5%, consisting of labor taxes of 12.4% and tax of 2.1% on profit.

8. ZAMBIA

This country was named by the World Bank in 2010 as the country capable of having the fastest economic reform in the world . However, its economic growth has not met these expectations, as the country is having a difficult time dealing with population growth. With over 2/3 of its population living below the poverty line, Zambia has begun introducing social programs to address the situation. However, it charges a profit tax of 1.5%, and among other taxes, the total tax burden is 14.5%.

7. UNITED ARAB EMIRATES

Arab countries tend to have a fluent economy given the amount of oil reserves they have, and the level of exports they make through this major product. The UAE is no exception to the rule. It holds the seventh largest oil reserve in the world , and has the seventeenth largest natural gas resource. It is a highly developed country with a dynamic economy. However, it has a fair total tax rate of 14.1%, which is composed exclusively of labor taxes, as no profits or other taxes are charged.

6. QATAR

One of the richest countries in the world , Qatar has the highest GDP per capita on the planet. Moreover, it has one of the highest growth rates, and is the most advanced in relation to the human development index in the Arab world. Taxes reach 11.3%, without taxes on profit.

5. NAMIBIA

This country used to be a part of South Africa, but gained its independence in 1990. It is very densely populated, and its main source of revenue is the gold, silver, and uranium industry. The tax burden is 9.8%, with a 4% tax profit, a 1% labor tax burden, and 4.8% in other taxes.

4. MACEDONIA

The country was a part of former Yugoslavia until 1991, and since its independence has worked to create an open economy with diversified production. The total tax burden reaches 9.7%. Businesses and corporations is 6.3%, and profits have a tax rate of 3.4%.

3. MALDIVES

This island is situated in the Indian Ocean and has a fairly small population. The main economic activity is tourism, accounting for 28% of Gross Domestic Product. The total tax rate is 9.3%. However, Maldives does not charge income tax or labor taxes.

2. VANUATU

Vanuatu Island is located in the southern Pacific Ocean, its economy is driven mainly by agriculture and tourism, along with financial services at sea. Total taxes reach 8.4%, an amount representing labor taxes of 4.5%, and other taxes representing 3.9% of the total.

1. EAST TIMOR

East Timor used to be a part of Indonesia until its independence in 2002. The country recently discovered offshore oil and gas reserves, which are helping with the development of its essentially agricultural economy. The total tax burden is 0.2%, only covering the activities of foreign companies in the country, with East Timor being the leading position in this selection of the 10 countries with the lowest tax rates in the world.

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